Taxation at source on interest

Taxation at source on interest applies to domestic interest accrued by

deposits held in accounts created for the receipt of public deposits located in banks or corresponding co-operative savings and loan associations or financial service offices

bonds that are open to public subscription.

Only income from interest accrued by natural persons and estates of the deceased is subject to taxation at source on interest. The tax at source on interest is 30% of the interest accrued. The tax at source on interest is collected by those responsible for paying the interest, including banks, financial service offices, or the issuer of the bond.

The state is the recipient of tax revenues derived from tax at source on interest. Deposits and bonds subject to taxation at source on interest are exempt from income tax.